YOUR COMPANY IS LOOKING FOR BUSINESS LOAN FINANCING!
THE PERFECT LOAN FOR SMALL BUSINESSES IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario L6j 7j8
Government Business Loan Financing. In Canada? Yes, Virginia, it really does exist and anywhere between 7000 - 8000 Canadian companies a year take advantage of it. So yes, it isn’t really the ' secret government stuff ' you've been reading about in the papers these days - i.e. phone and internet privacy invasion, etc. It's simply a solid way to put a start-up or growing business in the SME sector in Canada on great financial footing. Let's dig in.
WHAT DO YOU NEED TO KNOW ABOUT THE CANADA SMALL BUSINESS FINANCING PROGRAM
So why don’t the majority of business owners and managers know about this program, denoting our ' Secret " status? We think it’s because they think that anything to do with the government involves complex qualifications, too much documentation, and difficulty in approvals. Our view - NOT THE CASE!
WHY AE GOVERNMENT LOANS CONSIDERED DIFFICULT MY SO MANY BUSINESSES
Canadian government business loans, commonly known as ' SBL’s, are a great option when financing seems difficult. The trick - understanding that you're never; we repeat ' never ' dealing with the government. You simply have to locate a financial institution / Canadian chartered banker / participating credit union, who knows and understands the program. We meet many clients who have suffered through finding that one special banker that feels very comfortable with the program. And all they had to do was ask!
ELIMINATING THE GUESS WORK OUT OF THE GOVT GUARANTEED SMALL BUSINESS LOAN
So how do you take the guesswork out of govt business loans? It's simpler than you think. You need to understand how the loan works, what options are available regarding structure and type of assets financed ( only THREE types of assets can be financed - equipment and leasehold improvements ) and why this financing option matches even the financing that much larger corporations can't achieve. (No repayment penalty, minimal owner guarantees, etc)
SBL loans in Canada incent Canadian banks to lend to your firm. Why? The government guarantees a huge portion of the loan if it is properly administered and documented. So ' private sector ' Canadian commercial chartered banks are now in a position to... you guessed it... LEND!
WHAT CAN BE FINANCED UNDER THE PROGRAM
As stated earlier, only 3 asset categories are financeable under the program. They are:
Equipment
Leaseholds
Real Estate - rarely used for this program - but it's available
SBL LOANS ARE NOT CASH LOANS OR WORKING CAPITAL LOANS OR LINES OF CREDIT
Contrary to popular belief (or wishful thinking?!) these are not cash or working capital loans, or equity financing.
ARE YOU ELIGIBLE FOR A GOVERNMENT LOAN?
So let's talk about eligibility, repayment and structure, and, most importantly, the approval process.
You're eligible for this program if your company, proprietorship, or partnership is legally allowed to borrow in Canada - i.e. owners Cdn citizens, or landed immigrant status. You also must have a reasonable credit history personally as the owner, which is in fact a criteria for almost all business borrowing in Canada. You also must have a premises lease that is consistent with the term of the loan you are requesting.
BASIC LOAN STRUCTURE FOR GOVERNMENT LOANS
The basics of structure and repayment? Easy. 5-7 year terms, no prepayment penalty, an interest rate at 3% over prime, and 25% owner PG. (Personal Guarantee)
APPROVAL REQUIREMENTS
Finally, the approval process. Not what you think. A simple business plan or exec summary, a cash flow forecast, background info on owners, decent credit history, some related business/mgmt experience. 7 Park Avenue Financial prepares business plans for our clients that meet and exceed the requirements of banks and commercial lenders
CONCLUSION
We're sure there are a lot of ' government secrets' these days. But the best-kept one is one you should know about - Government business loan financing that's used by thousands of firms just like yours for business growth. and growing revenues for your products and services . Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can clear up those questions in short order.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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